Homework answers / question archive /  Calculate and analyze ratios (LO8-6) Selected financial data regarding current assets and current liabilities for Ferris Air and Oceanic Airlines are provided as follows:      ($ in millions) Ferris Air   Oceanic Airlines   Current assets:                         Cash and cash equivalents   $ 1,113         $ 2,791       Current investments     1,857           958       Net receivables     578           2,156       Inventory     469           1,023       Other current assets     210           1,344       Total current assets   $ 4,227         $ 8,272       Current liabilities:                         Current debt   $ 271         $ 1,627       Accounts payable     2,209           5,686       Other current liabilities     2,170           5,957       Total current liabilities   $ 4,650         $ 13,270         Required: 1-a

 Calculate and analyze ratios (LO8-6) Selected financial data regarding current assets and current liabilities for Ferris Air and Oceanic Airlines are provided as follows:      ($ in millions) Ferris Air   Oceanic Airlines   Current assets:                         Cash and cash equivalents   $ 1,113         $ 2,791       Current investments     1,857           958       Net receivables     578           2,156       Inventory     469           1,023       Other current assets     210           1,344       Total current assets   $ 4,227         $ 8,272       Current liabilities:                         Current debt   $ 271         $ 1,627       Accounts payable     2,209           5,686       Other current liabilities     2,170           5,957       Total current liabilities   $ 4,650         $ 13,270         Required: 1-a

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 Calculate and analyze ratios (LO8-6)

Selected financial data regarding current assets and current liabilities for Ferris Air and Oceanic Airlines are provided as follows:

Required:

1-a. Calculate the current ratio for Ferris Air and Oceanic Airlines. (Enter your answers in millions. For example, $5,500,000 should be entered as 5.5.)

-b. Which Airlines has the better current ratio?
   multiple choice 1

• Ferris Air

• Oceanic Airlines

  
2-a. Calculate the acid-test (quick) ratio for Ferris Air and Oceanic Airlines. (Enter your answers in millions. For example, $5,500,000 should be entered as 5.5.)

2-b. Which Airlines has the better acid-test ratio?
   multiple choice 2

• Ferris Air

• Oceanic Airlines